I'm not sure about Canada Dan, but the U.S. does have the enhanced drivers license and passport card... like I mentioned earlier, these aren't good for air travel... or travel outside the U.S., Canada, Mexico, or Caribbean islands. I only know this because I just recently applied for and recieved my U.S. Passport book, I opted for the book because I sometimes fly into Canada.
Right now is a good time to submit an application, as the deadline draws nearer the crunch/backup will surely rear it's ugly head again!
When I applied for mine at the beginning of February the lady said it would take about a month, I had my passport book in my hot little hand in 10 days!